Creating Experiences That Sell in The Experience Economy

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Thriving in the Experience Economy

Customer’s expectations have undoubtedly changed. Think of yourself as the customer and audit how you judge each company you provide business to. Drawing a common thread through these will show you what you perhaps inadvertently look for — friendly environment? Funny employees? Prompt service? Autonomy? Free cookies?

Then, take a look at the leading companies succeeding in today’s on-demand and constantly changing business landscapes: Amazon, Apple, Southwest Airlines, Nordstrom, L.L.Bean. What do they all have in common? Consistency-rich experiences.

And that’s what their customers like you and me are purchasing. Some recent studies suggest that customers prioritize experience over the product a company sells. For those who have been closely following the CX trend, this is not surprising. However, many companies, regardless of size, still face a significant adoption lag. They struggle to deliver a rich experience consistently with every customer interaction. In summary, there’s been much talk about defining great CX, tracking metrics, and implementing CX programs. Given its proven benefits, it’s puzzling why companies aren’t rushing to invest in this key revenue driver.  

Maybe we need more convincing. Despite rapid business and tech advances, adopting new strategies and mindsets often lags behind. Partially, this could be because companies don’t see a “problem” or “gap” that needs additional investment in this area.

Another part is because many companies, in my opinion:

  • Don’t fully understand what kind of experience their customers want
  • Think the current experience meets their customers’ needs because perhaps sales are consistently hitting their goals
  • Are measuring CX with the wrong metrics (or not measuring it at all)

A New Age: The Experience Economy

Like with most things, the way of looking at something is a necessary first step. Collectively, business perspectives need to change. New revenue-driving strategies interest business executives. However, there has not been enough widespread emphasis on prioritizing customer experience. If a company doesn’t provide a rich experience, it risks damaging its reputation, losing customer loyalty, and affecting retention. Additionally, it leaves room for competitors to gain an advantage.

Theresa Delgado, Director of Customer Experience, OpenWater (photo used with permission)

Theresa Delgado, Director of Customer Experience, OpenWater (photo used with permission)

“Customer experience has to be key,” says Theresa Delgado, CX director at OpenWater. “It has to be one of the main goals and one of the key things that an organization has to focus on because at any day a happy customer can leave you. Anyone can come into this space, disrupt it, and come up with new options, new features, and just a new way of doing things. You have to be in sync with what your customers and what your prospects and leads are asking for and what they’re looking for.”

Businesses often view customers as numbers, overlooking the importance of building meaningful relationships. The look and feel have changed due to our new digital communication methods and connections. But while society has adapted, companies have not.

“Experience now, actually building and growing that relationship and having that one-to-one interaction with your clients, is the key change,” says Delgado.

In the new economic environment, focusing on experience as a foundation allows businesses to allocate time, energy, and money effectively. This shift helps them build and sustain satisfying customer experiences. Many companies can no longer use “it’s not part of our strategy” as an excuse to rely solely on their product.

Reaching Millennials Revolves Around Rich Experiences

Millennials, aged 18-34, are transforming business, advertising, and communication. Their impact is reshaping how these fields operate. Connection with this generation is paramount, as they have buying homes, having families, and growing their career.  The way they look at businesses is much different than the generations that precede them. This generation is single-handedly shaping the concept of the experience economy.

“Being able to have platforms that actually respond to the way that we [Millennials] communicate now with emojis, memes, and gifs, I think that’s one way to be able to create that rich experience,” says Delgado. “It’s still business talk, but then it’s a more meaningful business talk.”

Significant Disruption: Experience Over Goods

Let’s bring this into context. Statistics indicate that the Millennial generation’s median age to marry is 30, up from 23 in the 1970s. Soon-to-be-wed couples traditionally create a wedding registry. Guests can then choose and purchase items like appliances, china sets, or furniture for the couple.

“Millennials are more likely to be established and living on their own prior to marriage, therefore they are more likely to own home items that would traditionally be on a registry,” says blogger Keith Sly of the restaurant The Manor, a popular venue in West Orange, New Jersey that has hosted weddings since the 1950s. “Millennials tend to value experiences and so it’s common for a registry to include concert tickets or tickets to a coffee convention.”

I’ve attended a handful of weddings this past year. As someone in the middle of the Millennial generation, I see this shift firsthand. I also fully embrace it. I don’t buy gifts from a long registry list at Bed, Bath & Beyond or choose the latest dinnerware from Macy’s. Most couples I know don’t include a registry notification with their digital invites. I contribute to their honeymoon through Honeyfunds. For example, I might pay for a massage in the French countryside or buy tickets to the opera, a sporting event, or a guided tour at their destination. This way, I feel part of their experience, rather than just giving a gift that may gather dust. As the couple, the honeymoon is one less expense they have to worry about.

To second Sly’s commentary, statistics on this generation’s buying habits trigger significant change for companies to meet their needs and expectations.

For Businesses, Experience Should Be Controlled by Marketing

Yes, despite what level of experience a company offers, there needs to be a great product. But, if you’re reading this post, that’s not the issue you’re facing. You’re seeking ways to improve the experience you offer.  

Research suggests that it takes nearly a dozen positive experiences to remedy one unresolved negative experience. And those negative experiences tend to have the loudest voices with the easiest and fastest outlets to spread said anger and discontent — social media.

Marketing leaders at your organization should regularly review and adjust their quarterly strategies. This includes all stages of the funnel: brand awareness, acquisition, onboarding, adoption, growth, and renewal. Throughout that entire journey, customer experience should be paramount.

“There are many opportunities to influence customer experiences,” says Brian Solis, Principal Analyst at Altimeter Group and author of X: The Experience When Business Meets Design. “It starts with understanding how, when and why customers are engaging with your brand, then finding ways to create new value with every interaction.”

I’d like to emphasize every interaction. At a dinner party, you don’t expect your hosts to greet you only when you arrive. You anticipate that they will wine and dine you throughout the evening, ensuring you have a great experience. It’s no different when marketing sends messages, campaigns, and advertisements to your prospects and customers.

When positioned correctly and communicated through the right channels, you will see positive results. This approach involves “selling” an experience that complements your product or service.

To find inspiration, consider your best and worst experiences with companies. Create a pros and cons list based on these reflections. Then, schedule a meeting with your organization’s leaders to begin implementing your ideas. Make sure to include marketing in that conversation.

 
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